#EUPrivacyCoinBan 🍒🍒
The European Union has finalized its decision to ban privacy coins and anonymous cryptocurrency wallets by July 1, 2027, as part of its Anti-Money Laundering Regulation (AMLR). This move aims to increase oversight in the crypto sector and make digital transactions more transparent to combat financial crimes ¹.
*Affected Privacy Coins:*
- *Monero (XMR)*: A cryptocurrency focused on private and secure transactions
- *Zcash (ZEC)*: A decentralized and privacy-focused cryptocurrency
- *Dash*: A cryptocurrency offering fast and private transactions
*Key Implications:*
- *Ban on Anonymous Accounts*: Crypto asset service providers, financial institutions, and exchanges will be prohibited from managing anonymous accounts and supporting privacy-focused cryptocurrencies.
- *Identity Verification*: Transactions exceeding €1,000 will require identity verification for both senders and receivers.
- *New Regulatory Body*: The Anti-Money Laundering Authority (AMLA) will oversee the implementation of the new framework, supervising around 40 major crypto players operating across multiple EU member states ¹ ².
*Potential Impact on the Market:*
- *Price Fluctuations*: Monero (XMR) and Zcash (ZEC) saw significant price declines following the announcement, with XMR dropping 7.2% and ZEC declining by 5.8%.
- *Shift to Crypto-Friendly Jurisdictions*: Traders may shift to jurisdictions like Dubai for regulatory relief ¹.